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Value limit increase in Lower Saxony in connection with COVID 19 pandemic extended

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Value limit increase in Lower Saxony in connection with COVID 19 pandemic extended

In order to minimise the economic restrictions in connection with the COVID 19 pandemic, the Lower Saxony state government raised the value limits for public contracts within the specified award procedures for a limited period of time by amending the "Ordinance on Contract Value Limits and Procedural Facilitations to the Lower Saxony Tariff Compliance and Award Act (Lower Saxony Value Limit Ordinance - NWertVO)" on 3 April 2020.

Accordingly, the following net value limits have applied in Lower Saxony since 03.04.2020:

  • Construction work up to 3,000,000 euros: Restricted invitation to tender without competitive bidding (NWertVO §4, Para. 1)
  • Construction work up to 1,000,000 euros: Contract award (NWertVO §4, Para. 2)
  • Services and supplies below EU thresholds: Free choice of procedure (NWertVO §8, para. 1)
  • Particularly urgent services and supplies in connection with the Corona pandemic up to 214,000 euros: Direct order (NWertVO §8, para. 2)

In addition, the requirements regarding the determination of the proof of suitability to be provided by the companies and the suitability criteria to be fulfilled in order to assess the financial performance of the companies were also significantly reduced (NWertVO, §4, para. 3).

These regulations for public contracts in times of the COVID 19 pandemic were previously valid for a limited period until 30.09.2020. The Lower Saxony Minister of Economic Affairs, Dr Bernd Althusmann, informed that in the course of September these regulations would be extended until 31.03.2021 with an announcement in the Lower Saxony Ministerial Gazette.

Outside of these special regulations in connection with the COVID 19 pandemic, the following value limits apply in accordance with the NWertVO:

  • Finishing trades, landscaping and street furniture up to 50,000 euros; civil engineering up to 150,000 euros; all other construction works up to 100,000 euros: Restricted invitation to tender without competitive bidding (VOB/A, §3a, Para. 2 No. 1).
  • Construction work up to 25,000 euros or 50,000 euros abroad: Contract by private treaty (NWertVO §3, paras. 1 and 2)
  • Services and supplies up to 50,000 euros: Restricted invitation to tender (NWertVO §7, para. 1)
  • Services and supplies up to 25,000 euros: negotiated award with or without a competitive tendering procedure (NWertVO §7, para. 2).

Further value limits apply to contracts for construction services for the purpose of expanding passive fixed network or mobile radio infrastructures limited until 01.01.2024:

  • Construction work up to 1 million euros: Restricted invitation to tender without competitive bidding (NWertVO §5, para. 1)
  • Construction work up to 100,000 euros: Contract by private treaty (NWertVO §5, para. 2)

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